The term "average" refers to a central value that represents a set of numbers. It is commonly calculated by adding all the values together and then dividing by the total number of values. This method is known as the arithmetic mean and is widely used in statistics to summarize data. In everyday life, averages help us understand trends and make comparisons. For example, the average score of a class on a test can indicate how well students performed overall. Averages can also be applied in various fields, such as economics, where the average income of a population is used to assess financial health.